PUBLIC FINANCIAL MANAGT. ACT, 2016 - CAGD · Public Financial Management Act, 2016 2 Act 921 29. Re-allocation of funds from a covered entity 30. Budget implementation by Principal

Public Financial Management Act, 2016

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ARRANGEMENT OF SECTIONS

Section

Preliminary Provisions

1. Object of this Act 2. Application

Responsibilities and Roles for Public Financial Management

3. General responsibility 4. Responsibilities of Minister 5. Powers of Minister 6. Responsibilities of Chief Director 7. Duties of a Principal Spending Officer 8. Controller and Accountant-General 9. Deputy Controller and Accountant-General10. Budget Office11. Oversight of Parliament

Macroeconomic and Fiscal Policies

12. Application of sections 13 to 1713. Fiscal policy principles14. Fiscal policy objectives15. Fiscal Strategy Document16. Fiscal policy indicators17. Cabinet to adhere to targets in Fiscal Strategy Document18. Suspension of rules or targets

Budget Preparation, Approval and Management

19. Salary negotiations for public sector20. Guidelines for preparation of annual budget21. Annual budget22. Approval of annual budget by Parliament23. Expenditure in advance of appropriation24. Budgeting on a gross basis25. Commitment of approved budget26. Expiry of appropriation27. Performance Report28. Mid-year review

PUBLIC FINANCIAL MANAGEMENT ACT, 2016


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29. Re-allocation of funds from a covered entity30. Budget implementation by Principal Spending Officers31. Cash flow forecast32. Virement33. Multi-year expenditure commitments34. Submission of quarterly reports on budget implementation35. Supplementary budget

Contingency Fund

36. Contingency Fund payments and advancements

Sinking Fund and Debt Servicing

37. Creation of Sinking Fund38. Sources of money for the Sinking Fund39. Administration of the Sinking Fund40. Bank account of Sinking Fund41. Payment from Sinking Fund42. Accounts and audit43. Annual report and other reports44. Transfer of money

Cash and Asset Management

45. Management and use of Government moneys46. Treasury Single Account47. Collection, deposit and retention of Government revenue48. Consolidated Fund49. Investment of balances on the Consolidated Fund50. Spending from the Consolidated Fund51. Bank account management52. Custody and management of assets53. Abandonment of claims and write off of public funds

Public Debt Management

54. Functions of the Public Debt Management Office55. Government borrowing and debt management56. Approval of Parliament of terms and conditions of government

borrowings57. Borrowing purposes



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58. Debt management objectives59. Debt management strategy60. Annual borrowing and recovery plan61. Issuance of government debt securities in the domestic debt market62. Issuance of government debt securities abroad63. Borrowing from banks and other financial institutions64. Other market transactions65. Status of Government debt66. Government guarantees67. Government lending68. Supplier’s credit agreements entered into by Government69. Finance lease agreements entered into by Government70. Record of government debt and finance arrangements71. Publication of government debt and finance arrangements72. Annual report to Parliament73. Borrowing by local government authorities, public corporations

and state-owned enterprises74. Borrowing by local government authorities75. Reporting requirements of local government authorities76. Borrowing by public corporations and state-owned enterprises77. Reporting requirements of public corporations and state-owned

enterprises78. Power to appoint agents

Accounts and Audit

79. Submission of financial statements80. Annual accounts81. Consolidated annual accounts82. Changes to accounting or classification system83. Internal audit84. External audit85. Report on findings and recommendations

Audit Committees

86. Establishment of Audit Committee87. Composition of Audit Committee



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88. Functions of Audit Committee89. Submission of consolidated audit accounts of local government

authorities90. Duty of governing body of public corporation and state-owned

enterprise91. Collection and receipt of moneys due to public corporations92. Removal of directors of a public corporation93. Annual financial plan of public corporations and state-owned

enterprises94. Financial directives to public corporations and state-owned enter-

prises95. Accounts and audit of public corporations and state-owned enter-

prises

Miscellaneous Provisions

96. Offences and penalties 97. Surcharge 98. Penalty for contravetion of this Act 99. Waiver of sovereign immunity100. Fiscal impact analysis of legislation and proposals101. Regulations102. Interpretation103. Repeals and savings104. Transitional provisions

SCHEDULE



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ACTOF THE PARLIAMENT OF THE REPUBLIC OF GHANA

ENTITLED


AN Act to regulate the financial management of the public sector withina macroeconomic and fiscal framework; to define responsibilitiesof persons entrusted with the management and control of publicfunds, assets, liabilities and resources, to ensure that public fundsare sustainable and consistent with the level of public debt; to providefor accounting and audit of public funds and to provide for relatedmatters.

PASSED by Parliament and assented to by the President:

Preliminary Provisions

Object of this Act1. (1) The object of this Act is to regulate the financial management

of the public sector within a macroeconomic and fiscal framework.(2) For the purpose of subsection (1), there shall be established

(a) a framework to support a sound fiscal policy and themacroeconomic management of public funds;

DATE OF ASSENT: 25th August, 2016.

REPUBLIC OF GHANA

THE NINE HUNDRED AND TWENTY-FIRST


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(b) processes for the preparation, approval and managementof a transparent, credible and predictable annual budget;

(c) mechanisms for the operation of the Consolidated Fund;(d) mechanisms for the management of public funds, assets and

liabilities;(e) internal and external audit frameworks and correlative

reporting and accounting systems; and(f) a mechanism to oversee the matters specified under para-

graphs (a) to (e).

Application2. (1) This Act applies to

(a) a covered entity; and(b) a public officer responsible for receiving, using, or managing

public funds.(2) This Act shall be read together with any other enactment

relevant to public financial management.(3) Where there is a conflict or inconsistency between the provi-

sions of this Act and any other relevant enactment, the provisions of thisAct shall prevail.

Responsibilities and Roles for Public Financial Management

General responsibility3. The Minister, Chief Director, Controller and Accountant-General,

a Principal Account Holder, a Principal Spending Officer and any otherpublic officer designated by the Minister to manage public funds shalldischarge their respective responsibilities and exercise their powers inaccordance with this Act and the Regulations.

Responsibilities of Minister4. (1) The Minister is responsible for the policy and strategic matters

related to the efficient operation of the public financial managementsystem of the country subject to policy guidance from Cabinet.

(2) For the purpose of subsection (1) and subject to the Constitu-tion and any other enactment, the Minister shall

(a) prepare the annual and supplementary budget estimates andreports for submission to Parliament;


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(b) submit to Parliament for approval, the budget of coveredentities as required under this Act or any other enactmentto ensure compliance of the covered entities;

(c) monitor and assess the implementation of the annualbudget and ensure the implementation of the fiscal policyof Government;

(d) manage Government property, financial assets, Govern-ment debts, Government guarantees and other contingentliabilities specified under this Act;

(e) account for public funds through a consolidated publicaccount;

(f) supervise the financial operations of a covered entity;(g) prepare Fiscal Strategy Document;(h) manage public funds;(i) coordinate and mobilise resources including financial

assistance from development partners and integrate theresources into the planning, budgeting, reporting andaccountability processes provided under this Act;

(j) provide policy framework for conducting banking andmanagement of cash for a covered entity;

(k) issue directives and instructions necessary for the effectiveimplementation of this Act or any other enactment to thehead of a covered entity, a Principal Account Holder andPrincipal Spending Officer of a covered entity; and

(l) perform any other functions assigned to the Ministerunder this Act.

Powers of Minister5. (1) Pursuant to section 4, the Minister may

(a) request a report or any other information from any coveredentity or any other person receiving grants, advances, loans,guarantees or indemnities from the Government;

(b) in consultation with the Civil Service Council and with theapproval of Cabinet, establish structures or units, withinthe Ministry necessary to enable the Minister dischargeresponsibilities under this Act;

(c) acting on the advice of the Attorney-General and subject tothe approval of Parliament, enter into and execute an agree-ment on behalf of the Government in relation to matters ofa financial nature; and


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(d) give directives and instructions necessary for the implemen-tation of the provisions of this Act.

(2) The Minister may delegate any of the responsibilities undersubsection (1) to the Chief Director or to a senior public officer notbelow the rank of a Director within the Ministry but shall not be relievedof the ultimate responsibility for the performance of the delegatedresponsibility.

(3) Subject to any procurement laws, the Minister may hire orretain the services of professionals, consultants or experts, as the Ministerconsiders necessary for the proper and effective performance of thefunctions of the Minister under this Act, on the terms and conditions tobe agreed upon.

Responsibilities of Chief Director6. (1) In addition to the duties assigned under section 20 of the Civil

Service Act, 1993 (PNDCL 327) and responsibilities specified under thisAct relating to a Principal Spending Officer, the Chief Director shall

(a) advise the Minister on economic, budgetary, and financialmatters and on matters related to the implementation ofthis Act;

(b) coordinate the preparation of the (i) Fiscal Strategy Document,(ii) budget estimates, and(iii) the Appropriation Bill;

(c) co-ordinate the promotion and enforcement of a transparent,efficient and effective manangement of

(i) public revenue,(ii) public expenditure, and(iii) the assets and liabilities of a covered entity;

(d) monitor the performance of the public financial manage-ment systems of the public sector;

(e) monitor the financial and related performance of a coveredentity; and

(f) prepare a report within one month after the end of eachquarter on the implementation of the annual budget by theGovernment and submit the report to the Minister.


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(2) For purposes of subsection (1), the Chief Director(a) shall through the Controller and Accountant-General have

access, during working hours, to(i) the accounting records or information of a covered

entity,(ii) the place where public accounting services are carried

out, and(iii) the place where public accounting records are kept;

and(b) may inspect, during working hours, the offices of a

covered entity and access any information relating topublic finance that the Chief Director may request.

(3) The Chief Director may, under paragraph (b) of subsection (2),authorise a public officer to inspect the offices of a covered entity.

(4) The Chief Director may, in writing, delegate any of the respon-sibilities under this section to a senior public officer of the Ministry butshall not be relieved of the ultimate responsibility for the discharge of thedelegated responsibility.

Duties of a Principal Spending Officer7. (1) A Principal Spending Officer of a covered entity shall

(a) ensure the regularity and proper use of money appropri-ated in that covered entity;

(b) authorise commitments for the covered entity within aceiling set by the Minister under section 25; and

(c) manage the resources received, held or disposed of by oron account of the covered entity.

(2) A Principal Spending Officer shall, in the exercise of dutiesunder this Act, establish an effective system of risk management, internalcontrol and internal audit in respect of the resources and transactions ofa covered entity.

(3) Where a Principal Spending Officer receives a subvention onbehalf of another entity, that Principal Spending Officer shall remit thesubvention to that other entity in accordance with the approved cashflow plan for the subvention.

(4) A Principal Spending Officer may delegate a function orresponsibility specified in this Act to a public officer who is under the


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control of that Principal Spending Officer but shall not be relieved of theultimate responsibility for the performance of the delegated function orresponsibility.

(5) Where a Principal Spending Officer delegates a function orresponsibility under subsection (4), that Principal Spending Officer shallgive the directives necessary for the proper exercise or performance ofthat function or responsibility.

Controller and Accountant-General8. (1) The President shall, in accordance with article 195 of the

Constitution, appoint a Controller and Accountant-General who shallbe the Chief Accounting Officer of the Government and the chief advisorto the Minister and Government in matters relating to accountancy.

(2) The terms and conditions of service of a Controller andAccountant-General shall be specified in the letter of appointment andshall be appointed for a term of four years which may be renewed foranother term of four years.

(3) The Controller and Accountant-General shall be responsible tothe Minister for the custody, safety and integrity of public funds.

(4) The Controller and Accountant-General shall(a) compile and manage the accounts prepared in relation to

public funds;(b) issue general instructions to a Principal Spending Officer

in accordance with this Act and the Regulations;(c) keep, render and publish statements on public accounts

under this Act;(d) develop efficient accounting systems for a covered entity;(e) approve accounting instructions of a covered entity;(f) receive, disburse and provide secure custody for public

funds;(g) on the instructions of the Minister, open an account with

the Bank of Ghana and its agents necessary for the depositof public funds subject to compliance with the TreasurySingle Account system established under section 46;

(h) authorise the opening of an account for a covered entity;


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(i) in consultation with the Auditor-General, specify for acovered entity, the accounting standards, policies and theclassification system to be applied in public accounting toensure that a proper system of accounting operates;

(j) provide accounting officers to covered entities; and(k) be responsible for the classification and management of

value books.

Deputy Controller and Accountant-General9. (1) The President shall, in accordance with article 195 of the

Constitution, appoint Deputy Controllers and Accountants-General.(2) A Deputy Controller and Accountant-General shall perform

functions assigned by the Controller and Accountant-General.

Budget Office10. (1) The Ministry shall have an office known as the Budget Office.

(2) The Budget Office shall be responsible for(a) the preparation of the annual estimates and Medium-Term

Expenditure Framework within the constraints specifiedin the Government’s Fiscal Strategy Document;

(b) the preparation of the mid-year review and half-yearlybudget implementation reports under sections 28 and 34;

(c) advising the Minister through the Chief Director on allmatters related to the annual budget, supplementary budgetand the Medium Term Expenditure Framework;

(d) advising the Chief Director on matters related to theclassification of the budget and systems required to preparethe budget; and

(e) perform any other function assigned by the Chief Director.

Oversight of Parliament11. (1) Subject to the Constitution, Parliament shall provide oversight

in respect of(a) matters relating to budget and finance;(b) government expenditure;(c) performance reporting;(d) post-legislative scrutiny; and(e) impact of financial policy measures on the economy.


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(2) The Speaker of Parliament may assign responsibilities undersubsection (1) to a committee of Parliament or an office established byParliament for that purpose.

Macroeconomic and Fiscal Policies

Application of sections 13 to 1712. (1) The provisions of sections 13 to 17 apply to the central

Government.(2) The Minister may, by legislative instrument, extend the appli-

cation of sections 13 to 17 to local government authorities and publiccorporations.

Fiscal Policy principles13. (1) The following general principles of fiscal management apply

for the effective implementation of this Act:(a) the Principal Account Holder and Principal Spending

Officer of a covered entity shall be accountable to Parlia-ment for the performance of their functions with respect tothe implementation of fiscal policies;

(b) Fiscal Policy shall be developed in a manner that takes intoaccount the impact on the welfare of the current popula-tion and future generations;

(c) Fiscal Policy shall be conducted in a manner that avoidsabrupt changes in the evolution of macroeconomic andfiscal indicators; and

(d) the management of public funds, assets and liabilities,including natural resources, and fiscal risks in the countryshall be conducted in a prudent way, with a view to main-taining fiscal sustainability.

(2) The following principles shall guide the formulation and imple-mentation of Fiscal Policy objectives:

(a) sufficient revenue mobilisation to finance Governmentprogrammes;

(b) maintenance of prudent and sustainable levels of publicdebt;


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(c) ensuring that the fiscal balance is maintained at a sustain-able level over the medium term;

(d) management of fiscal risks in a prudent manner; and(e) achieving efficiency, effectiveness and value for money in

expenditure.(3) Fiscal management shall be carried out in a professional and

transparent manner and in accordance with best practice and standards.(4) For purposes of subsection (3),

(a) the roles and responsibilities of a covered entity and publicofficer with respect to the implementation of the FiscalPolicy shall be clearly established and defined;

(b) timely information related to the management of theFiscal Policy shall be made available to enable effectivescrutiny of the Fiscal Policy and the management of publicfinances; and

(c) a person responsible for publicising information shall notwithhold the information except for reasons of nationalsecurity, defence, or international obligations of the Republic.

Fiscal Policy objectives14. (1) The prime Fiscal Policy objective of Government is to ensure

the macroeconomic stability of the country within the macroeconomicand fiscal framework.

(2) The Government may determine any other fiscal policyobjective, consistent with the principles set out in section 13.

Fiscal Strategy Document15. (1) The Minister shall, not later than the end of May of each

financial year, prepare and submit to Cabinet for approval, a FiscalStrategy Document.

(2) The Fiscal Strategy Document shall specify(a) the Medium-Term Fiscal Framework of the Government

with measurable fiscal objectives and targets to guide shortand medium term fiscal planning for the ensuing three tofive year period, consistent with the fiscal principles andfiscal policy objectives of Government;


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(b) an updated and comprehensive medium-term macroeco-nomic and fiscal forecast covering current developmentsand multiple year projections in line with the co-ordinatedprogrammes of economic and social development policiesas specified in article 36(5) of the Constitution;

(c) the Medium-Term Expenditure Framework of the Govern-ment with a resource envelope and overall expenditureceiling;

(d) a statement of policy measures the Government shall imple-ment in order to stay within the confines of the fiscal policyobjectives;

(e) a comprehensive and quantified fiscal risk statement for thepublic sector showing the impact of alternative macroeco-nomic assumptions on the forecast fiscal balances, andquantified risks of guarantees, contingent liabilities andpublic private partnerships;

(f) the Medium-Term Debt Management Strategy includingdebt sustainability analysis and sensitivity analysis of macro-fiscal risk senarios;

(g) a progress report on the implementation of the Fiscal StrategyDocument for the previous financial year; and

(h) the alignment of statutory and other earmarked funds tonational macro-fiscal goals and targets.

(3) The report referred to under paragraph (g) of subsection (2)shall include

(a) an update on the macroeconomic forecasts and fiscaloutturns;

(b) the implementation of the fiscal policy and progress againstthe fiscal principles and rules, including targets wherefeasible;

(c) an explanation of deviations from the fiscal principles, rulesand targets for the short and medium term objectives; and

(d) an explanation of the measures taken to respond to devia-tions.

(4) In addition to the requirements specified in subsection (2), theMinister may propose specific numerical fiscal rules in the Fiscal StrategyDocument to constrain Government with specific reference to one ormore budget aggregates subject to subsection (5).


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(5) A numerical rule proposed shall be consistent with(a) the Fiscal Policy objectives and Fiscal Policy indicators

specified under sections 14 and 16 respectively;(b) the Petroleum Revenue Management Act, 2011 (Act 815); and(c) any other relevant enactment.

Fiscal policy indicators16. (1) Compliance by Government with the fiscal policy objectives,

fiscal policy principles and other requirements shall be assessed inaccordance with the following indicators:

(a) the non-oil primary balance or non-oil fiscal balance, as apercentage of gross domestic product; and

(b) any two of the following fiscal policy indicators: (i) public debt as a percentage of gross domestic product;(ii) capital spending as a percentage of total expendi-

ture;(iii) revenue as a percentage of gross domestic product;

or(iv) wage bill as a percentage of tax revenue.

(2) The Ministry shall review the fiscal policy indicators specifiedin subsection (1), every five years.

Cabinet to adhere to targets in Fiscal Strategy Document17. Subject to article 76(2) of the Constitution, Cabinet shall, adhere

to the targets set out in the Fiscal Strategy Document,(a) in making decisions with implications for public finances,(b) in determining, formulating and implementing the policies

of the Government, or(c) in performing any function conferred on it by the Consti-

tution, this Act or any other enactment.

Suspension of rules or targets18. (1) A fiscal target or rule provided for in the Fiscal Strategy Docu-

ment may be suspended with the prior written approval of Cabinet where(a) any of the following events occur:

(i) a natural disaster, public health epidemic, or war asa result of which a state of emergency has beendeclared by the President under article 31 of theConstitution;


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(ii) an unanticipated severe economic shock, includingcommodity and oil price shocks; and

(b) as a result of the occurrence of an event under paragraph(a), the Minister is of the opinion that the implementationof any of the fiscal targets or rules would be unduly harmfulto the fiscal and macroeconomic or financial stability ofthe country.

(2) Where an event under subsection (1) has occurred, the Ministershall submit a memorandum to Cabinet to request for approval tosuspend any of the rules or targets in the Fiscal Strategy Document.

(3) The Minister shall state in the memorandum(a) the reasons why the implementation of the fiscal rule or

target would be harmful to the finances and macroeconomicor financial stability of the country;

(b) the period within which the fiscal rule or target is to besuspended; and

(c) a fiscal adjustment plan setting out the measures to returnto a position of compliance with the fiscal rule or targetwithin a period of not more than five years.

Budget Preparation, Approval and Management

Salary negotiations for public sector19. (1) The Minister responsible for Employment in consultation with

the Minister shall ensure that(a) salary and other compensation negotiations in respect of

the public sector for the ensuing financial year are completednot later than the end of April of the current financial year;and

(b) the Fiscal Strategy Document required under section 15reflects the negotiated aggregate of public sector salaries andcompensation for the ensuing year.

(2) Where salary and other compensation negotiations in respectof the public sector are not completed by the end of April of the currentfiscal year, the Fiscal Strategy Document prepared for the ensuing fiscalyear shall state an expected negotiated aggregate of public sector salariesand compensation for the ensuing year based on the negotiated publicsector salaries and compensation for the preceding fiscal year.


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Guidelines for preparation of annual budget20. (1) The Minister shall

(a) subject to Cabinet approval, issue guidelines for the prepa-ration of the budget for each financial year; and

(b) circulate copies of the guidelines to each covered entity notlater than the 30th of June of every year.

(2) The guidelines shall include(a) the economic outlook for the country;(b) revenue forecasts;(c) fiscal targets in relation to the fiscal principles, particularly,

the need to achieve sustainable levels of public debt andfiscal balance;

(d) medium-term fiscal framework including key assumptions;(e) the multiple year ceilings for each covered entity in line with

the Fiscal Strategy Document;(f) the ceilings on the required number of staff for each covered

entity and the cost of appropriation for the relevant yearfor the public service;

(g) the reconciliation of any change to the previous Medium-Term Expenditure Framework arising from the discretionarypolicy changes, baseline parameters, and re-allocation ofexpenditure items;

(h) the selection criteria for investment projects, includingprovision for linking forward recurrent expenditureestimates to investments;

(i) the ceilings for the preparation of the budget estimates oflocal government authorities;

(j) details of expenditure under statutory funds and alignmentand co-ordination of statutory funds with fiscal objectives,targets and other aspects of the budget; and

(k) any other information required from a covered entity toenable the Minister prepare the annual budget in accordancewith the requirements of section 21.

Annual budget21. (1) The Minister shall,

(a) in consultation with the relevant stakeholders, prepare theproposed annual budget not later than 1st October of eachfinancial year; and


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(b) submit the proposed annual budget to Cabinet for approvalnot later than the 15th of October of each financial year.

(2) Cabinet shall, not later than the 30th of October of each financialyear, communicate to the Minister, the decision of Cabinet on theproposed annual budget.

(3) The Minister shall, on behalf of the President, lay beforeParliament not later than the 15th of November of each financial year,estimates of the revenues and expenditure of the Government, theannual budget, for the ensuing financial year.

(4) The estimates of expenditure of all public offices and publiccorporations other than those set up as commercial ventures, shall

(a) be classified under programmes or activities in the Appro-priation Bill to be introduced into Parliament, and

(b) in respect of payments charged on the Consolidated Fund,be laid before Parliament for the information of membersof Parliament.

(5) The annual budget shall(a) be based on

(i) sound analysis and forecasts of macro-economicdevelopments and fiscal projections in relation tothe Medium-Term National Development Plan; and

(ii) approved plans;(b) be consistent with the Fiscal Strategy Document;(c) indicate

(i) an update of the macro-economic and fiscalprojections in the Fiscal Strategy Document;

(ii) any change in the projections of fiscal aggregatesunder the Fiscal Strategy Document prepared andan explanation for the change; and

(iii) any change in the fiscal targets and ceilings underthe Medium-Term Expenditure Framework;

(d) set out the recent trends and developments on the indica-tors of the economy of the country and provide forecastsof the indicators, for a three to five year period;

(e) provide detailed information on recent fiscal developmentsand forecasts for the period determined by the Ministerunder paragraph (d) in respect of


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(i) Government;(ii) recurrent and capital expenditures of Government;(iii) borrowing and debt servicing of the Government;(iv) an overall net borrowing limit for Government

defined with reference to the Medium Term FiscalFramework, and the nominal limit of total financialborrowing by Government in the course of thefinancial year;

(v) contingent liabilities of the Government includingthose related to public private partnerships;

(vi) the amount and uses of internally-generated fundsretained by a covered entity;

(vii) the amount of outstanding accounts receivable andpayable;

(viii) a statement of tax expenditures, including the totalcost of existing tax expenditures and the disclosureof new tax expenditures;

(ix) the ceilings on the required number of staff for eachMinistry, Department or Agency and the corre-sponding amount appropriated to operate the publicservice for the ensuing financial year; and

(x) any other information in respect of assets andliabilities that the Minister considers appropriate;

(f) indicate the financing estimates for the financial year towhich the budget relates, including

(i) the financing to be transferred from the PetroleumFunds and other similar funds to the ConsolidatedFund;

(ii) the plans for domestic financing of the annualbudget comprising borrowings by Government andthe drawing down of Government deposits;

(iii) the plans for external financing of the budget in theform of borrowing and grants;

(iv) a plan for the government debt and any otherfinancial liabilities for the financial year to whichthe annual budget relates;

(v) a plan for the guarantees to be issued in the financialyear; and

(vi) a plan for divestment of government assets;


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(g) provide for the expenditure estimates for the precedingfinancial year, the current financial year, and the ensuingfinancial year;

(h) contain a statement of the multiple year commitments tobe made by Government in the financial year, which shallinclude a legally-binding ceiling on such commitments;

(i) include a schedule of all major investment projects by vote,taking account of total project costs and expected commit-ments of the annual budget and Medium-Term Expendi-ture Framework;

(j) indicate the budgets of covered entities and the opinion ofGovernment on the budgets; and

(k) state any grant or subvention made to a local governmentauthority for the financial year.

(6) The Minister shall present the annual budget accompanied with(a) the Appropriation Bill and any other Bill that is required to

implement the annual budget; and(b) a memorandum specifying the measures taken by Govern-

ment to implement in the ensuing financial year the recom-mendations of Parliament in respect of the report of theAuditor-General with respect to this Act.

(7) The Minister shall, publish in the Gazette, the AppropriationAct on or before the 31st of December of each financial year.

(8) For the purpose of subsection (1), “relevant stakeholders”include the Ministry of Finance, Bank of Ghana, Ghana StatisticalService, civil society organisations, Ministries, Departments and Agencies,Ghana Revenue Authority, Controller and Accountant-General’s Depart-ment, National Development Planning Commission and local govern-ment authority.

Approval of annual budget by Parliament22. (1) Parliament shall, by the 31st of December of each financial

year, consider and approve(a) the annual budget and the correlative work plan of

Government for the ensuing financial year;(b) the Appropriation Bill; and(c) any other Bill that may be required to implement the

annual budget.


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(2) The annual budget, approved by Parliament, takes effect fromthe 1st day of January of the ensuing year.

Expenditure in advance of appropriation23. Where the President is satisfied that the Appropriation Act in

respect of a financial year, will not come into operation at the beginningof that financial year, the President may, with the prior approval ofParliament, by

(a) resolution in accordance with article 180 of the Constitu-tion, and

(b) warrant addressed to the Minister,authorise the issue of moneys from the Consolidated Fund for purposesof meeting the expenditure necessary to carry on the services of the Gov-ernment, until the expiration of three months from the beginning of thatfinancial year, or from the coming into operation of the AppropriationAct, whichever is earlier.

Budgeting on a gross basis24. (1) The revenues and expenditure of Government shall be entered

in the annual estimates of revenue and expenditure on a gross basis withoutbeing netted with each other.

(2) Despite subsection (1), tax revenue shall be entered in the annualestimates of revenue and expenditure after deducting the estimatedamount of tax refunds from the tax revenue.

Commitment of approved budget25. (1) After approval of the annual budget by Parliament, the

Minister shall, within ten days of the ensuing month, issue quarterlyexpenditure ceilings in respect of approved annual budget.

(2) The Controller and Accountant-General shall, based on thequarterly expenditure ceilings issued under subsection (1), release fundsto the Principal Spending Officers of covered entities.

(3) A Principal Spending Officer shall commit the budget of acovered entity based on the quarterly warrants issued under this section.

(4) A Principal Spending Officer or any other public officer shallnot commit Government to a financial liability, including contingentliability, unless that Principal Spending Officer is specifically authorisedto do so under this Act, the Regulations or directives issued pursuant tothis Act.


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(5) A commitment in respect of staff recruitment shall, subject tofinancial clearance by the Minister, be within the limits set by Parliamentunder section 21 (5) (e) (ix).

(6) Where a covered entity enters into a contract or any otherarrangement that commits or purports to commit Government to makea payment, the contract or arrangement shall be approved by the PrincipalSpending Officer of that covered entity and the Principal SpendingOfficer shall enter the contract or arrangement into the Ghana IntegratedFinancial Management Information System.

(7) Subject to Parliamentary approval granted under section 21,the Minister shall grant clearance before a covered entity signs a multi-year contract.

(8) The Minister shall, in accordance with spending plansapproved under section 22, approve commitments subject to the avail-ability of sufficient unencumbered or uncommitted appropriation onthe expenditure ceilings in respect of that commitment except that thissubsection, shall not apply to the Judiciary, Legislature and the AuditService.

(9) A Principal Spending Officer shall(a) maintain records of all financial commitments chargeable

to each appropriation or item of expenditure in respect ofa covered entity, and

(b) ensure that each commitment or expenditure is in accor-dance with the commitment control system prescribedunder the Regulations.

(10) A Principal Spending Officer who contravenes subsection (4)is liable to an administrative penalty of two thousand penalty units.

Expiry of appropriation26. (1) Each appropriation approved by Parliament shall cease to have

effect at the close of the financial year in respect of which the appropria-tion was made.

(2) Any balance of moneys unexpended from the ConsolidatedFund or any other public fund for a financial year by Government by theclose of the year, shall elapse by the 31st of January of the ensuing year.


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Performance report27. (1) Each Principal Account Holder shall, within the first quarter

of the ensuing year after the Minister submits the annual budget toParliament, submit to Parliament, a performance report on budget imple-mentation for the proceeding financial year.

(2) Each Principal Account Holder shall submit a copy of theperformance report required under subsection (1) to the Minister.

(3) The Minister shall determine the format of the performancereport required under subsection (1).

(4) The performance report shall indicate(a) the achievements of the Principal Account Holder for the

preceding financial year;(b) the annual work plan comprising the objectives, outputs,

outcomes, targets and performance indicators;(c) the staff establishment of the Principal Account Holder in

respect of a vote for the preceding year and ensuing threeyears;

(d) a statement on the actions taken by the covered entity toimplement the recommendations of Parliament in respectof the most recent report of the Auditor-General; and

(e) any major investment to be implemented for more than oneyear, including

(i) any multi-year investment;(ii) the total cost of the major investment within the

medium term profile set out in the Medium TermExpenditure Framework, and

(iii) the respective amount to be appropriated in thebudget year.

Mid-year review28. (1) The Minister shall, not later than the 31st of July of each

financial year, prepare and submit to Parliament a mid-year fiscal policyreview.

(2) The mid-year fiscal policy review shall include the followinginformation:

(a) a brief overview of recent macroeconomic developmentsof Government;


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(b) an update of macroeconomic forecasts undertaken byGovernment;

(c) an analysis of the total revenue, expenditure and financingperformance for a period up to the first six months of thefinancial year;

(d) a presentation of a revised budget outlook for the unex-pired term of the financial year, and the implication of therevised budget outlook for the Medium-Term Fiscal andExpenditure Framework if necessary; and

(e) where necessary(i) plans for submitting a proposed supplementary

budget for approval by Parliament; and(ii) an overview of the implementation of the annual

budget and of the budgets of covered entities.

Re-allocation of funds from a covered entity29. (1) Subject to any limitation that Parliament may impose, the

Minister may, re-allocate funds that have been allocated to a coveredentity to another covered entity specified in the annual budget in the eventwhere the functions of that covered entity are transferred to anothercovered entity.

(2) The Minister report to Parliament in the next reporting period ona re-allocation in subsection (1).

Budget implementation by Principal Spending Officers30. (1) A Principal Spending Officer shall, plan and manage the

activities of a covered entity in accordance with the policy statementand financial estimates of that covered entity.

(2) A covered entity shall not obtain a credit facility from anyperson if that covered entity

(a) has not obtained permission from the Minister;(b) has unpaid arrears from a debt incurred in a previous

financial year; and(c) does not have the capacity to pay for the expenditure from

the approved estimates as appropriated by Parliament forthat financial year.


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(3) A Principal Spending Officer shall, not later than the 1st day ofthe months of April, July, September, and December of each year, in theformat determined by the Chief Director, submit a report to the Ministeron the activities or programmes of the respective covered entity and theimplementation of the budget of the covered entity for the precedingquarter, including the actual and forecast commitments and cash posi-tions of the covered entity.

(4) The Minister shall, not later than the end of the third weekafter the end of a quarter, submit to Parliament, a consolidated expenditurecommitment report to cover all the reports submitted under subsection (3).

(5) For purposes of this section “policy statement” means themedium-term development plans of Government.

Cash flow forecast31. A Principal Spending Officer shall, in accordance with the Regu-

lations, prepare and submit to the Minister monthly cash flow forecastsof the covered entity for the ensuing three months or any other periodthat the Minister may specify.

Virement32. (1) The Minister may, on the request of a Principal Spending

Officer, execute a virement in respect of an amount of money allocatedto the covered entity of that Principal Spending Officer.

(2) A virement executed under subsection (1) shall not result in afuture liability for that covered entity or the Government.

(3) A virement executed under subsection (1) is subject to thefollowing conditions:

(a) a virement of funds allocated for wages and salaries in anexpenditure vote shall not be made unless the virement is inrespect of wages and salaries within that expenditure vote;

(b) a virement that involves a change in the spending plansapproved by the Minister for the current financial year shallrequire the prior written approval from the Minister;

(c) a virement may be made from a recurrent expenditure tocapital expenditure as well as from one capital expenditureto another capital expenditure but shall not be made froma capital expenditure to a recurrent expenditure; and


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(d) a virement shall not be made in respect of appropriatedamounts between covered entities without the approval ofParliament in a supplementary estimate.

(4) Subject to subsection (3), the Minister may delegate to a coveredentity, the authority to vary economic classifications within that coveredentity up to a limit specified by the Minister, subject to the submission ofa quarterly report by that entity to the Minister and Parliament.

Multi-year expenditure commitments33. (1) A covered entity shall not enter into any agreement with a

financial commitment that binds the Government for more than onefinancial year or that results in a contingent liability except where thefinancial commitment or the contingent liability

(a) is with the prior written approval of the Minister, and(b) authorised by Parliament in accordance with article 181 of

the Constitution.(2) Parliament may, in the annual budget, authorise a covered

entity to make a multi-year expenditure commitment, and where Parlia-ment so authorises, the annual budget shall indicate the commitmentapproved for the financial year and the approved multi-year commit-ments.

(3) A multi-year expenditure commitment approved undersubsection (2) shall be consistent with the objectives of the Fiscal StrategyDocument.

(4) The Minister shall, in accordance with section 25, submit toParliament a report on the performance of the multi-year expenditurecommitments made for each financial year.

(5) A Principal Spending Officer may propose or commit to investin a project only after expert assessment has been completed and thejustification for the investment project and efficiency is established.

Submission of half-yearly reports on budget implementation34. (1) The Minister shall submit to Parliament, not later than the

30th day of the months of January and July of each year, a half-yearlyreport on budget implementation performance.

(2) The report required under subsection (1) shall include(a) programmes and a major category of economic classifica-

tions; and


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(b) a brief statement of programme performance by eachPrincipal Account Holder.

Supplementary budget35. (1) Where in a financial year, it is found that the amount appro-

priated by the Appropriation Act is insufficient, or that a need has arisenfor expenditure for a purpose for which no amount has been appropriatedby the Appropriation Act, the Minister shall lay before Parliament forapproval, a supplementary estimate, in the form of a SupplementaryAppropriation Bill indicative of the amount required.

(2) The Supplementary Appropriation Bill shall indicate how thesupplementary expenditure shall be financed.

(3) The appropriated budget of a covered entity under section 21does not include the supplementary budget of the covered entity.

(4) The Minister shall, subject to section 18, ensure that supple-mentary expenditure under a Supplementary Appropriation Bill is notlikely to breach the objectives, targets, or rules set out in the Fiscal StrategyDocument.

Contingency Fund36. (1) There shall be paid into the Contingency Fund moneys voted

for the purpose by Parliament; and advances may be made from theContingency Fund which are authorised by the Committee responsiblefor financial matters in Parliament whenever the Committee is satisfiedthat there has arisen an urgent or unforeseen need for expenditure forwhich no other provision exists to meet the need.

(2) Where an advance is made from the Contingency Fund, asupplementary estimate shall be presented as soon as possible to Parlia-ment for the purpose of replacing the amount advanced.

Sinking Fund and Debt Servicing

Creation of Sinking Fund37. (1) The Minister may create a Sinking Fund.

(2) The Sinking Fund shall be used to redeem specified debtobligations of Government.

(3) The Minister shall, as part of the annual budget, specify andprovide an update on the loans to be redeemed by the Sinking Fund.


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(4) For the purpose of this Act, a “Sinking Fund” means a specialfund created for the redemption of a loan or a pool of loans, purchase ofloans or any other related purpose by means of a periodic contributioninto a fund which is calculated in a manner that when accumulated atcompound interest over the life of the loan, the sum available in the fundshall be sufficient to redeem the loan.

Sources of money for the Sinking Fund38. The sources of money for the Sinking Fund are

(a) periodic contributions of specified amounts determined bythe Minister as part of the annual budget;

(b) repayment inflows of money on-lent by the Ministry tocovered entities, state- owned enterprises and public corpo-rations;

(c) moneys that accrue to the Fund from investment ofmoneys of the Fund;

(d) moneys borrowed or raised from capital markets for thepurpose of redemption of existing debts;

(e) moneys approved by Parliament for debt repayment undersubsection (4) of section 23 of the Petroleum RevenueManagement Act 2011 (Act 815); and

(f) any other moneys that the Minister, with the approval ofParliament determines to be paid into the Fund.

Administration of Sinking Fund39. (1) The Controller and Accountant-General shall administer the

Sinking Fund created under subsection (1) of section 37.(2) The Controller and Accountant-General shall for the purpose

of subsection (1), invest moneys of the Sinking Fund.(3) For the purpose of subsection (2), the Minister shall issue an

Investment Policy Statement.

Bank account of the Sinking Fund40. (1) The Controller and Accountant-General shall pay moneys for

the Sinking Fund into a bank account opened for the purpose with theapproval of the Minister.

(2) The bank account opened for the Sinking Fund shall beconsidered to be part of the Treasury Single Account.


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Payment from Sinking Fund41. (1) A payment shall not be made from the Sinking Fund unless

the funds are required for the redemption of a loan specified undersubsection (3) of section 37.

(2) Subsection (1) includes a buyback of a debt obligation on theopen market.Accounts and audit

42. (1) The Controller and Accountant-General shall keep accountsof the Sinking Fund in accordance with Generally Accepted AccountingPrinciples and in the form agreed to by the Auditor-General.

(2) The Controller and Accountant-General shall submit theaccounts of the Fund to the Auditor-General for audit within three monthsafter the end of the financial year.

(3) The Auditor-General shall not later than three months afterthe receipt of the accounts, audit the accounts and forward a copy of theaudit report to the Minister.

Annual report and other reports43. (1) The Controller and Accountant-General shall within one

month after receipt of the audit report, submit an annual report to theMinister covering the activities and operations of the Sinking Fund forthe year to which the report relates.

(2) The annual report shall include the report of the Auditor-General and a report on the performance of the Sinking Fund relative toits statutory object.

(3) The Minister shall within one month after the receipt of theannual report submit the report to Parliament with the statement that theMinister considers necessary.

(4) The Controller and Accountant-General shall also submit tothe Minister any other reports which the Minister may require in writing.

Transfer of money44. The total sum of money located in any bank immediately before

the coming into force of this Act, which constitutes moneys designatedfor the repayment of loans, shall at the coming into force of this Act betransferred into the Fund created under section 37 (1).

Cash and Asset Management

Management and use of Government moneys45. (1) The Minister is responsible for the management and efficient


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use of all revenues and moneys paid into the Consolidated Fund and anyother public funds designated as being in the care of the Minister.

(2) For the purposes of subsection (1), the Minister(a) shall ensure co-ordination between the cash management

of Government and the fiscal policy, monetary policy anddebt management policy of Government;

(b) shall establish the institutional and administrative arrange-ments required to manage the cash management systemwithin the Ministry; and

(c) may request a person, including a Ministry, Department orAgency, to provide any information that the Ministerconsiders necessary for the effective operation of the cashmanagement system.

Treasury Single Account46. There is established by this Act, a Treasury Single Account

(a) which is to serve as a unified structure of Governmentaccounts to give a consolidated view of Government cashresources; and

(b) into which all Government cash including moneys receivedby covered entities shall be deposited and from which allexpenditure of Government and covered entities shall bemade.

Collection, deposit and retention of Government revenue47. (1) A covered entity shall not collect or receive revenue except where

the covered entity is authorised by an Act of Parliament to collect orreceive the revenue.

(2) The revenue collected or received by a covered entity undersubsection (1) shall

(a) be paid into and form part of the Consolidated Fund;(b) be receivable into a public Fund; and(c) be receivable into a public fund established for a specific

purpose where authorised by the Constitution or an Act ofParliament.

(3) A covered entity may retain revenue collected or received,where the revenue is in the form of a levy, licence fee or administrativepenalty and the covered entity is authorised through appropriation byParliament to retain the revenue.


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Consolidated Fund48. (1) Any revenue or other money raised or received for Govern-

ment shall form part of the Consolidated Fund.(2) Dividends due to Government shall be paid into the Consoli-

dated Fund without any deduction.(3) The Minister may, by warrant to the Controller and Accountant-

General, authorise a prepayment from the Consolidated Fund to(a) a public fund established by or under an Act of Parliament,

or(b) a Principal Spending Officer, where the prepayment is to

fund an expenditure which is approved under an Appro-priation Act or a Supplementary Appropriation Act.

Investment of balances on the Consolidated Fund49. (1) The Minister may

(a) authorise the Controller and Accountant-General to investany sum standing to the credit of the Consolidated Fundwith

(i) the Bank of Ghana, or(ii) an approved financial institution, or

(b) invest any sum standing to the credit of the ConsolidatedFund, in an instrument other than government instrumentthat the Minister considers appropriate.

(2) The Instrument referred to in subsection (1) shall mature withinthe fiscal year.

Spending from the Consolidated Fund50. (1) Subject to article 178 of the Constitution, an expenditure shall

not be met from the Consolidated Fund except on the authority of awarrant issued by the Minister to the Controller and Accountant-General.

(2) The Minister shall issue a warrant for payment(a) that is authorised under an Appropriation Act or a Supple-

mentary Appropriation Act for the financial year that thewithdrawal is intended for;

(b) for repaying moneys erroneously paid into the ConsolidatedFund or other public funds;


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(c) for paying sums required for advance, refund, rebate ordrawback where the payment of the advance, refund,rebate or drawback is provided for in this or any otherenactment; or

(d) that is subject to cash available under section 45.(3) The Minister may suspend, withdraw, limit or place condi-

tions on a warrant under this section where the Minister determines thatthe suspension, withdrawal, limitation or condition is necessary due to afinancial exigency or for purposes of public interest.

Bank account management51. (1) A bank account shall not be opened for any covered entity

without the written approval of the Controller and Accountant-General.(2) Subject to the written approval of the Controller and Accountant-

General, a bank account shall not be opened to receive or spend publicfunds.

(3) A bank account shall be managed by a covered entity inaccordance with the terms and conditions determined by the Controllerand Accountant-General.

(4) Subject to subsection (5), the Bank of Ghana is the depositoryof cash for the recurrent and capital operations of all covered entities.

(5) The Controller and Accountant-General may authorise a coveredentity to open a bank account in an approved financial institution.

(6) The Controller and Accountant-General shall ensure that allgovernment bank accounts are reconciled regularly and in accordancewith generally accepted accounting practices.

(7) The Controller and Accountant-General(a) shall regulate the operation of a bank account of a covered

entity; and(b) may, with the prior written approval of the Minister,

suspend or close a bank account if the Controller andAccountant-General considers it necessary in the publicinterest.

(8) A Principal Spending Officer of a covered entity shall beforethe closure of a bank account under the control of that Principal SpendingOfficer, in writing, obtain the approval of the Controller and Accountant-General for the closure of the bank account.


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(9) The Bank of Ghana or where applicable, a financial institu-tion that holds a bank account on behalf of a covered entity shall, onrequest by the Controller and Accountant-General or the Auditor-General, in writing, disclose any financial information regarding theaccount, within fourteen days after receipt of the request.

Custody and management of assets52. (1) A Principal Spending Officer of a covered entity, state-owned

enterprise or public corporation shall be responsible for the assets of theinstitution under the care of the Principal Spending Officer and shallensure that proper control systems exist for the custody and managementof the assets.

(2) A control system specified in subsection (1) shall be capableof ensuring that

(a) preventive mechanisms are in place to eliminate theft, loss,wastage and misuse; and

(b) processes, whether manual or electronic, and proceduresare in place for the effective, efficient, economical and trans-parent use of the assets.

(3) A Principal Spending Officer shall maintain a register of(a) lands and buildings under the control or possession of that

Principal Spending Officer; and(b) all other assets under the control or possession of the

Principal Spending Officer.(4) The register referred to in subsection (3) (a) shall contain a record

of the details of each parcel of land and each building and the terms onwhich the land or building is held, with reference to the conveyance,address, area, date of acquisition, disposal or major change in use, cost,lease terms, maintenance contracts and other pertinent management details.

(5) The register referred to in subsection (3) (b) shall contain a recordof the details of all major items of furniture and equipment includingfurniture and equipment issued for either government quarters or offices,large tools for government works, plant, equipment and vehicles.

(6) A Principal Spending Officer shall maintain adequate recordsof government stores.

(7) The Principal Spending Officer is discharged of accountabilityof government stores where the stores have been

(a) consumed in the course of public business and records areavailable to show that the stores have been consumed;


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(b) worn out in the normal course of public business and deletionfrom the accounts has been approved by the Minister andthey have been disposed of in accordance with the direc-tives of the Minister; or

(c) lost, stolen, destroyed, damaged or rendered unserviceableother than by fair wear and tear and deletion from theaccounts has been approved by Parliament.

(8) The Minister may, by legislative instrument, delegate powersof deletion and disposal of government assets to the Principal SpendingOfficer of a covered entity, state-owned enterprise or public corporation.

(9) A Principal Spending Officer shall not delegate a power grantedunder subsection (8).

Abandonment of claims and write off of public funds53. (1) The Minister shall seek the approval of Parliament, to

(a) abandon or remit a claim by or on behalf of Government,(b) abandon or remit a service to the Government, and

write off a loss of or a deficiency in public funds or public resources.(2) Where Parliament grants approval under subsection (1), the

approval shall be by a resolution of a simple majority of Parliament. (3) The approval under subsection (1) shall specify the amount

authorised for each abandonment or write off and the total sum authorisedto be written off or abandoned.

(4) The Minister may, in accordance with the Regulations,abandon or remit

(a) a claim by or on behalf of Government;(b) abandon or remit a service to Government; and

write off a loss of or a deficiency in public funds or public resources,where the amount involved is within the threshold set out in the Regula-tions.

(5) The Minister shall, within three months after the end of eachfinancial year, lay before Parliament

(a) a statement of the losses written off by the Minister inaccordance with subsection (1);

(b) a statement of the losses written off by the Minister inaccordance with subsection (4); and

(c) a list of the public officers surcharged for loss of, or adeficiency in public moneys or public resources.


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(6) The amount in excess shall be treated as a loss of public fundsin accordance with section 96.

(7) Where(a) a loss or an abandonment of a loss, or(b) a remittance of the total loss which is abandoned or remit-

ted exceeds the amount authorised by Parliament, theamount in excess shall be treated as a loss of public funds inaccordance with section 97.

Public Debt Management

Functions of the Public Debt Management Office54. (1) The Ministry of Finance shall have an office that is respon-

sible for public debt management and which shall be under the supervi-sion of the Chief Director in accordance with the Civil Service Act, 1993(PNDC Law 327).

(2) The Public Debt Management Office shall(a) handle debt management operations of the Government;(b) assess risks for government guarantees and lending;(c) assess all forms of credit agreements including suppliers’

credit, buyer’s credit, mixed credit and finance lease agree-ments to be entered into by the Government;

(d) assess the feasibility of borrowing requirements impliedby the path for the fiscal deficit in the Fiscal StrategyDocument;

(e) formulate the Medium-Term Debt Management Strategy;and

(f) perform any other functions that may be determined by theMinister.

Government borrowing and debt management55. (1) Subject to article181 of the Constitution and this Act, the

Minister has the authority to raise a loan on behalf of the Government,both within and outside the country and in local and foreign currencies.

(2) The Minister shall not delegate a power granted under subsection(1) to any other person.

(3) The proceeds of all borrowings on behalf of the Governmentshall be

(a) paid into and form part of the Consolidated Fund; and(b) utilised for any of the purposes stated in section 57.


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(4) Government shall cause to be opened a bank account forpurposes of depositing all government borrowings.

Approval of Parliament of terms and conditions of governmentborrowings

56. (1) The terms and conditions of all government borrowings shallbe laid before Parliament and shall not come into operation unless theterms and conditions are approved by a resolution of Parliament inaccordance with article 181 of the Constitution.

(2) For the purpose of subsection (1), Parliament may, from timeto time, by resolution, approve standard terms and conditions forgovernment borrowings including the following:

(a) the nature of facility;(b) purpose of government borrowing;(c) condition of drawdown;(d) terms of interest payment and repayment;(e) pre-payment and cancellation;(f) fees and charges in respect of the borrowing;(g) tax gross-up and indemnities;(h) other indemnities;(i) events of default;(j) conduct of business by the parties;(k) payment mechanisms;(l) costs and expenses;(m) remedies and waivers;(n) amendments and waivers;(o) governing law and jurisdiction;(p) agent’s option;(q) arbitration;(r) waiver of immunity;(s) conditions precedent;(t) conditions of payment;(u) documents to be submitted;(v) collateral security; and(w) force majeure.

Borrowing purposes57. (1) Government may borrow for the following purposes:

(a) to finance government budget deficit as approved byParliament;


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(b) to build up and maintain a liquidity buffer at a level or rangedetermined by the Minister;

(c) to on-lend funds to local government authorities, stateowned enterprises, public corporations or any other entityas approved by Parliament;

(d) to honour obligations under outstanding governmentguarantees;

(e) to refinance outstanding government debt, including repay-ment of a loan prior to the maturity date of the loan andrepurchase of government debt securities; and

(f) for any other purpose as may be approved by Parliament. (2) The issuance of a government debt security under this section

shall be in accordance with the Medium-Term Debt ManagementStrategy and the annual borrowing plan.

(3) For purposes of this section “liquidity buffer” means the accu-mulation of funds reserved for debt restructuring and cash management.

Debt management objectives58. (1) The objectives of government debt management are to ensure

that(a) the financing needs of Government are met on a timely

basis; (b) borrowing costs to Government are as low as possible over

the medium to long term, consistent with a prudent degreeof risk;

(c) the development of the Ghanaian debt market is promoted;and

(d) any other action considered to impact positively on publicdebt is pursued.

(2) The Minister shall be responsible for ensuring that the debtmanagement objectives set out under subsection (1) are achieved.

Debt management strategy59. (1) The Public Debt Management Office shall, submit to the

Minister, a Medium-Term Debt Management Strategy for the manage-ment of government debt.

(2) The Public Debt Management Office shall,(a) on a rolling basis, update the Medium-Term Debt Manage-

ment Strategy at least once a year; and


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(b) submit the update in respect of the Medium-Term DebtManagement Strategy to the Minister.

(3) The Minister shall not later than December of the precedingyear, review the Medium-Term Debt Management Strategy and submitthe strategy to Cabinet for approval.

(4) The Minister shall publish the approved Medium-Term DebtManagement Strategy on the website of the Ministry and any othermedium determined by the Minister.

(5) The Medium-Term Debt Management Strategy shall be basedon the debt management objectives set out in section 58 and shall takeinto account

(a) the cost and risk embedded in the current debt portfolio;(b) future borrowing requirements and debt recovery mecha-

nisms of the Government;(c) the macro-economic framework of the country;(d) prevailing market conditions; and(e) any other factors that may be relevant for the development

of the Medium-Term Debt Management Strategy.(6) The Medium-Term Debt Management Strategy shall include

guidelines or ranges for the acceptable market risks in the debt portfolioand planned borrowings and other debt management activities topromote development of the Ghanaian debt market.

(7) Upon approval of the Medium-Term Debt Management Strategy,all Government borrowings and other debt management operations shallbe undertaken in compliance with the Medium-Term Debt ManagementStrategy and approved revisions to the strategy.

Annual borrowing and recovery plan60. (1) The Public Debt Management Office shall, not later than the

month of December of the preceding financial year, prepare an annualborrowing and recovery plan to meet the aggregate borrowing require-ments of Government for each financial year.

(2) The annual borrowing and recovery plan shall be based on theapproved Medium-Term Debt Management Strategy and shall include

(a) planned borrowing operations over the year;(b) borrowing instruments to be used; and(c) the indicative timing of the borrowings.


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(3) The annual borrowing and recovery plan shall be updated atleast every six months.

(4) The Minister shall review and approve the annual borrowingand recovery plan and updates to the plan.

(5) The Minister shall publish on the website of the Ministry, theapproved annual borrowing and recovery plan and updates to the plan.

Issuance of government debt securities in the domestic debt market61. (1) The issuance of government debt securities in the domestic

market shall be by way of auction or any other method approved by theMinister.

(2) For the purpose of subsection (1), the Minister shall, byRegulations, or rules or guidelines published in the Gazette, regulate theformat of and criteria for the auction and the procedures for participation,bidding, and allocation in auctions.

Issuance of government debt securities abroad62. The issuance of government debt securities outside the country shall

(a) be in the manner and on the terms and conditions approvedby Parliament; and

(b) subject to subsections (2) and (4) of section 60 be based onthe annual borrowing and recovery plan.

Borrowing from banks and other financial institutions63. Government borrowing from banks and other financial institu-

tions by means of a loan agreement shall(a) be on the terms and conditions approved by Parliament;

and(b) subject to subsections (2) and (4) of section 60 be based on

the annual borrowing and recovery plan.

Other market transactions64. (1) Subject to subsection (2), the Minister may, in accordance with

the debt management objectives and the medium-term debt managementstrategy, undertake other market transactions, including

(a) entering into financial swaps and other derivative transactionson behalf of Government for the purpose of managing therisks of Government under various financial transactions;

(b) offering buybacks and exchanges of government debtsecurities; and

(c) offering early repayment of loans before the date ofmaturity of the loans.


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(2) A transaction under subsection (1)(a) is subject to theapproval of Parliament.

Status of Government debt65. (1) A government debt is an absolute and unconditional financial

obligation of the Government.(2) A debt charge is a statutory claim against the Consolidated

Fund, without further appropriation.(3) For purposes of subsection (2), a debt charge includes

(a) moneys required to provide a sinking fund or other meansof securing repayment of debt securities;

(b) the remuneration and compensation of registrars andfiscal agents appointed under this Act;

(c) costs, expenses and charges incurred in the(i) negotiation or raising of a loan; or(ii) issue, redemption, servicing, payment or manage-

ment of a loan or a debt security issued in respectof a loan; and

(d) moneys required to be paid under a contract or agreementrelated to government debt.

Government guarantees66. (1) Subject to this Act, the Minister may issue a guarantee on behalf

of Government in respect of the obligation of a local governmentauthority, public corporation or other entity if, considering the debtmanagement objectives and the debt management strategy of theGovernment, the Minister is satisfied that

(a) it is in the public interest to issue the guarantee; and(b) the beneficiary of the guarantee has the ability to

(i) repay the underlying loan; and(ii) fulfill all payment and other obligations under the

underlying loan and under the guarantee and relatedagreements.

(2) The Public Debt Management Office shall, before the issuanceof a government guarantee under subsection (1), assess the local govern-ment authority, public corporation or other entity to ascertain the fiscalrisk of that local government authority, public corporation or otherentity to the Government in respect of that guarantee.

(3) The result of the risk assessment and the method used in the


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assessment shall be submitted to the Minister in written form.(4) A government guarantee is subject to prior approval by Parlia-

ment.(5) Unless otherwise determined by Parliament, a beneficiary of a

government guarantee shall(a) pay a guarantee fee determined by the Minister, in consul-

tation with the Director responsible for the Public DebtManagement Office, to cover the credit risk of Governmentupon the signing of the guarantee; and

(b) reimburse or pay in a manner directed by the Minister, the(i) moneys paid by Government to honour the

guarantee where the beneficiary defaults and theGovernment is required to honor an obligationunder the guarantee;

(ii) expenses incurred by Government in relation to theguarantee; and

(iii) interest on all moneys paid by Government tohonour the guarantee.

(6) The Minister shall pay into the Consolidated Fund guaranteefees received under paragraphs (a) and (b) of subsection (5).

(7) A government guarantee shall be supported by appropriate legaldocumentation executed by the beneficiary of the guarantee indemnifyingGovernment for any amount paid by Government under the guarantee.

(8) Where a beneficiary of a government guarantee neglects orfails to honour the obligations of that beneficiary under the loan agreementto the creditor or make good an indemnity to Government, the Ministershall

(a) proceed to enforce the rights of Government under theindemnity, and

(b) pursue any action necessary to recover from the beneficiary,moneys owed to Government under the guarantee agree-ment and indemnity together with interest at the prevailingmarket rate.

(9) The moneys recovered by Government under subsection (8)shall be paid into the Consolidated Fund.


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(10) A letter of intent, letter of comfort or similar letter, or anapproval by Government of a borrowing to be undertaken by anotherentity shall not constitute a government guarantee or any other form oflegal undertaking of Government.

(11) Any amount due to be paid by Government under a guaranteeissued under this Act shall be charged on and paid out of the Consoli-dated Fund without further appropriation.

Government lending67. (1) Subject to article 181 of the Constitution, the Minister has the

sole authority to lend public funds on behalf of Government.(2) The Public Debt Management Office shall, before the grant of

a loan(a) assess the credit risk to Government of providing the loan;

and(b) propose the rate of interest to cover the cost and the credit

risk of Government.(3) The Public Debt Management Office shall submit to the

Minister, in writing,(a) the result of the risk assessment;(b) the method used in the assessment; and(c) the proposed rate of interest.

(4) The Minister shall enter into a government lending transactiononly where the risk assessment concludes that the borrower has the financialability to service the loan on the due date.

(5) Unless otherwise determined by Parliament, the borrower shallpay to Government, interest at a rate determined by the Minister to coverthe cost of the lending transaction and the credit risk of Government.

(6) A government lending transaction shall be supported byappropriate legal documentation executed by the borrower agreeing toservice the debt obligation of that borrower under the transaction.

(7) Where a borrower neglects or fails to service a debt obligationunder a government lending transaction, the Minister shall

(a) proceed to enforce the rights of Government under thattransaction, and

(b) pursue any action necessary to recover from the borrower,outstanding moneys owed to Government under the agree-ment.


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Supplier’s credit agreements entered into by Government68. (1) Subject to article 181 of the Constitution, the Minister shall

enter into supplier’s credit agreements.(2) The Public Debt Management Office shall, before the execution

of a supplier’s credit agreement, assess the cost to Government of enteringinto that agreement.

(3) The assessment of cost under subsection (2) shall include acomparison with other available financing options.

(4) The Public Debt Management Office shall submit to theMinister, in writing,

(a) the result of the assessment; and(b) the available financing options.

Finance lease agreements entered into by Government69. (1) Subject to article 181 of the Constitution, the Minister has

the sole authority to enter into finance lease agreements on behalf ofGovernment.

(2) The Public Debt Management Office shall, before the executionof a finance lease agreement, assess the cost to Government of enteringinto that agreement.

(3) The assessment of cost under subsection (2) shall include acomparison with other available financing options.

(4) The Public Debt Management Office shall submit to the Minister,in writing,

(a) the result of the assessment; and(b) the available financing options.

Record of government debt and finance arrangements70. The Public Debt Management Office shall keep in a timely manner

and in an appropriate database, comprehensive and accurate records of(a) outstanding government debts;(b) derivative transactions entered into by Government;(c) guarantees issued by Government;(d) government lending transactions;(e) finance lease agreements entered into by Government; and(f) any other relevant record in respect of Government debt

obligation.


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Publication of government debt and finance arrangements71. (1) The Public Debt Management Office shall, at least at half year

intervals, prepare statistical bulletins that provide accurate and timelyinformation in respect of

(a) debt stocks, debt service cost and risk measures of the debtportfolio of Government;

(b) derivative transactions entered into by Government;(c) guarantees issued by Government and the purposes and

beneficiaries of these guarantees;(d) lending provided by Government and the borrowers of the

funds;(e) supplier’s credit agreements entered into by Government

and the purposes of the agreements;(f) finance lease agreements entered into by Government, the

purposes of the agreements, and the counterparts ofGovernment; and

(g) financial terms of new agreements.(2) The statistical bulletin referred to in subsection (1) shall be

published(a) on the official website of Government;(b) on the official website of the Ministry; and(c) in any other medium determined by the Minister.

Annual report to Parliament72. (1) The Public Debt Management Office shall, in respect of each

preceding year, prepare an annual report on(a) borrowings and other government debt management

operations,(b) guarantee and lending activities of Government, and(c) other finance arrangements entered into by Government.

(2) The annual report shall include(a) information on the debt management strategy and the

rationale for the strategy;(b) information on the contribution of the debt management

strategy and the execution of the strategy in achieving thedebt management objectives under section 58;

(c) a list of outstanding government debt;(d) a list of outstanding government guarantees, including


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(i) the amount and beneficiaries of the guarantees, and(ii) an assessment of the fiscal risk embedded in the

guarantees;(e) a list of lending operations, including outstanding amounts

and beneficiaries of the loans and an assessment of the creditrisk of the loans; and

(f) a list of outstanding supplier’s credit agreements andfinance lease agreements and the financial terms of the agree-ments.

(3) The Minister shall(a) review the annual report; and(b) after notifying Cabinet, submit the report to Parliament not

later than 31st of March each year.

Borrowing by local government authorities, public corporations andstate-owned enterprises

73. (1) On the coming into force of this Act, borrowing by a localgovernment authority, a public corporation or a state-owned enterpriseshall be in accordance with this Act.

(2) An enactment in force on the coming into force of this Act,relating to borrowing by a local government authority, a public corpora-tion or a state-owned enterprise, shall be construed with the necessarymodification to give effect to this Act.

(3) A local government authority, public corporation or state-owned enterprise is liable for the debt and other obligations of that localgovernment authority, public corporation or state-owned enterprise with-out recourse to Government, unless otherwise explicitly guaranteed byGovernment in accordance with this Act.

Borrowing by local government authorities74. (1) Subject to subsection (2) and without limiting section 73, a

local government authority may borrow funds only(a) from within the country, and(b) up to the limit determined by the Minister in consultation

with the Minister responsible for Local Government,and consistent with the medium term debt strategy and annual borrowingand recovery plan.


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(2) A local government authority shall obtain prior writtenapproval of the Minister for

(a) the issuance of debt securities to the public; or(b) borrowing of an amount above the limit determined by the

Minister under subsection (1).

Reporting requirements of local government authorities75. (1) A local government authority shall, not later than ten working

days from the date of signing a loan agreement, issuance of a debt securityor obtaining an overdraft, submit to the Minister a record of the transac-tion.

(2) A local government authority shall submit to the Ministerannually and upon request

(a) data on the total outstanding debt of that local governmentauthority; and

(b) any other information that the Minister may specify. (3) The Public Debt Manaement Office shall keep, in a timely

manner and in an appropriate database, comprehensive and accuraterecords of outstanding local government debts.

Borrowing by public corporations and state-owned enterprises76. (1) Subject to subsection (2) and without limiting section 73, a

public corporation or state-owned enterprise may borrow funds up tothe limit determined by the Minister and consistent with the annualborrowing and recovery plan.

(2) A public corporation or state-owned enterprise shall obtain theprior written approval of the Minister in respect of

(a) borrowing of an amount above the limit determined by theMinister under subsection (1); or

(b) borrowing from a foreign market.(3) For purposes of this section, “foreign market” means the

financial market that represent the mechanisms for issuing and tradingsecurities of an entity domiciled outside the country.

Reporting requirements of public corporations and state-owned enterprises77. (1) A public corporation or state-owned enterprise shall, not later

than twenty working days after the end of each quarter, submit to theMinister a record of outstanding debt and new borrowings including over-drafts and corporate debt securities issued.


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(2) A public corporation or state-owned enterprise shall submitto the Minister annually and upon request

(a) a record of the total outstanding debt and borrowingoperations of that public corporation or state-ownedenterprise; and

(b) any other record that the Minister may specify.(3) The Public Debt Management Office shall keep in a timely man-

ner and in an appropriate database, comprehensive and accurate recordsof outstanding debts of public corporations and state-owned enterprises.

Power to appoint agents78. (1) The Minister may appoint issuing agents, registration agents,

primary dealers and other agents to facilitate primary and secondarymarket transactions in government debt securities.

(2) Despite subsection (1), the Bank of Ghana may act as a fiscalagent for Government to facilitate the issuance, management, redemptionand repayment of government securities, on the terms and conditionsthat may be agreed in a fiscal agency agreement.

(3) A fiscal agency agreement under subsection (2) shall provide,among others, for

(a) the duties and responsibilities of the Bank of Ghana;(b) the remuneration due the Bank of Ghana for the perfor-

mance of the duties and responsibilities under paragraph(a); and

(c) any reporting required by the Minister.(4) For purposes of this section, an “issuing agent”, “registration

agent”, “primary dealer” and “other agents” referred to in subsection (1)means an agent appointed in accordance with the Public ProcurementAct, 2003 (Act 663) who acts on behalf of Government.

Accounts and Audit

Submission of financial statements79. (1) A Principal Spending Officer shall, through the Principal

Account Holder(a) prepare and submit quarterly financial statements to the

Controller and Accountant-General by the 15th day of themonth following each quarter of each financial year; and

(b) submit any other relevant report within the time that theController and Accountant-General may determine.


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(2) The Controller and Accountant-General shall prepare andsubmit a quarterly financial statement to the Minister by the end of themonth following the end of each quarter.

Annual accounts80. (1) A Principal Spending Officer of a covered entity shall, within

two months after the end of each financial year, prepare and submit tothe Auditor-General and Controller and Accountant-General, the accountsand information set out in the Schedule.

(2) A Principal Spending Officer of a public corporation shall,within two months after the end of each financial year,

(a) prepare, in the format determined by the Controller andAccountant-General, a summary statement of financialperformance of that public corporation;

(b) submit the summary statement to the Controller andAccountant-General and the Auditor-General; and

(c) submit a copy of the summary statement to the Minister.(3) The accounts submitted under subsection (1) shall

(a) be prepared in accordance with accounting standards andassociated policies;

(b) indicate the basis of accounting used in the preparation ofthe accounts; and

(c) indicate the action taken by the covered entity as regardsthe recommendations of Parliament on the report of theAuditor-General.

(4) The Auditor-General shall in accordance with the AuditService Act, 2000 (Act 584) examine and audit the accounts submittedunder this section.

Consolidated annual accounts81. (1) The Controller and Accountant-General shall, within three

months after the end of each financial year, prepare and submit thefollowing consolidated accounts to the Minister and the Auditor-General:

(a) the consolidated annual accounts of Government includingthe accounts specified in the Schedule;

(b) the accounts of the Contingency Fund; and(c) the accounts of the Petroleum Funds.

(2) The Controller and Accountant-General shall, in respect ofaccounts submitted under subsection (1), indicate a defect, shortcomingor any other factor which in the opinion of the Controller and Accountant-General materially affects the responsibility of the Minister under thisAct.


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Changes to accounting or classification system82. The Controller and Accountant-General

(a) may introduce changes to the accounting or classificationsystem; but

(b) shall provide a justification in respect of (i) the change; and (ii) how the accounting or classification system intro-

duced shall ensure that public funds are properlyaccounted for.

Internal audit83. (1) A covered entity shall have an Internal Audit Unit.

(2) The head of the Internal Audit Unit shall report administra-tively to the Principal Spending Officer and functionally to the AuditCommittee of that covered entity.

(3) An Internal Auditor of the Internal Audit Unit of a coveredentity shall

(a) appraise and report on the soundness and application ofthe system of controls operating in the covered entity;

(b) evaluate the effectiveness of the risk management and gov-ernance process of a covered entity and contribute to theimprovement of that risk management and governanceprocess;

(c) provide assurance on the efficiency, effectiveness andeconomy in the administration of the programmes andoperations of a covered entity; and

(d) evaluate compliance of a covered entity with enactments,policies, standards, systems and procedures.

(4) The Internal Auditor of a covered entity shall, in consultationwith the Principal Spending Officer of the respective covered entity andin accordance with guidelines issued by the Internal Audit Agency, preparean annual audit work plan of the activities required to be performed bythe Internal Auditor in a financial year which is determined by the riskassessment including the fiscal risk of that covered entity.

(5) The annual audit work plan, referred to under subsection (4),includes an appraisal and report on

(a) budget planning and implementation, and compliance withnational goals and objectives;

(b) the development initiatives of the covered entity;(c) procurement of goods, services and works;


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(d) value for money on public expenditure;(e) follow-ups on the agreed audit recommendations and

required corrective actions;(f) systems of government revenue collections for proper

accountability; and(g) proper, timely and effective use of Government financial

information systems.(6) The Internal Auditor of a covered entity shall, within thirty

days after the beginning of the financial year, submit(a) the annual audit work plan to the Principal Spending Officer

of that covered entity and the Audit Committee establishedunder section 86; and

(b) a copy of the annual audit work plan to the Internal AuditAgency.

(7) The Internal Auditor of a covered entity shall submit quarterlyreports on the execution of the annual audit work plan to the PrincipalSpending Officer of the covered entity concerned, the Audit Committee,the Auditor-General and the Director-General of the Internal AuditAgency.

(8) The Internal Auditor of a covered entity shall, in the perfor-mance of functions under this Act,

(a) have access to information and property required to beaudited; and

(b) be provided with any relevant explanation required by theInternal Auditor.

(9) The Internal Auditor of a covered entity shall report to thePrincipal Spending Officer concerned any incidents of suspected fraudor misuse of public funds.

(10) Where the Internal Auditor of a covered entity suspects thata Principal Spending Officer is involved in fraud or misuse of publicfunds, the Internal Auditor shall report the matter to the Director-Generalof the Internal Audit Agency who shall in consultation with the chair-person of the relevant Audit Committee initiate investigations into thematter.

(11) This section shall, so far as it relates to internal audit, be readand construed as one with the Internal Audit Agency Act, 2003 (Act 658)


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External audit84. The Auditor-General shall, within six months after the end of each

financial year, examine and audit the public accounts submitted underthis Act in accordance with article 187 of the Constitution and the AuditService Act, 2000 (Act 584).

Report on findings and recommendations85. (1) A Principal Spending Officer shall, on an annual basis,

submit the following to the Minister and Auditor-General:(a) a report on the status of implementation of recommenda-

tions made by the Auditor-General in respect of that coveredentity; and

(b) a report on the status of implementation of recommenda-tions made by Parliament in respect of that covered entity.

(2) The Attorney-General shall, on an annual basis, submit areport on the status of any action commenced on behalf of the Govern-ment to the Minister, Auditor-General and Parliament following findingsof the Auditor-General and recommendations of the Public AccountsCommittee of Parliament.

Audit Committees

Establishment of Audit Committee86. (1) There is established by this Act, an Audit Committee that shall

serve one particular covered entity or any other covered entities in asector.

(2) For the purpose of subsection (1), the Minister shall, by Regu-lations, specify

(a) the number of Audit Committees to be established in eachsector;

(b) the qualification for appointment to an Audit Committee;(c) the funding of Audit Committees; and(d) the procedure for meetings of an Audit Committee.

Composition of Audit Committee87. (1) An Audit Committee consists of five members.

(2) The majority of members of an Audit Committee shall beindependent members.

(3) The Internal Audit Agency and the Institute of CharteredAccountants, Ghana shall nominate the majority of members fromamong persons who do not work in the covered entity to which the


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Audit Committee relates and two other members shall be nominated bythe Principal Account Holder.

(4) The chairperson of an Audit Committee shall be elected fromamong the independent members of the Committee.

(5) Without limiting subsection (2), an Audit Committee may, inthe performance of its functions under this Act, co-opt a senior manage-ment personnel to serve on the Audit Committee.

(6) The Principal Account Holder shall appoint the chairpersonand members of an Audit Committee.

Functions of Audit Committee88. (1) An Audit Committee shall ensure that the head of a covered

entity, to which the Audit Committee relates,(a) pursues the implementation of any recommendation

contained in (i) an internal audit report; (ii) Parliament’s decision on the Auditor-General’s

report;(iii) Auditor-General’s Management Letter; and(iv) the report of an internal monitoring unit in the

covered entity concerned particularly, in relation tofinancial matters raised; and

(b) prepares an annual statement showing the status of imple-mentation of any recommendation contained in

(i) an internal audit report;(ii) Parliament’s decision on the Auditor-General’s

report;(iii) Auditor-General’s Management letter;(iv) the report on financial matters raised in an internal

monitoring unit of a covered entity; and(v) any other related directive of Parliament.

(2) An annual statement required under subsection (1) (b) shall(a) indicate the remedial action taken or proposed to be taken

to avoid or minimise the recurrence of an undesirablefeature in the accounts and operations of a covered entity;

(b) indicate the period for the completion of the remedialaction; and

(c) be endorsed by the relevant sector Minister and forwardedto the Minister, Parliament, Office of the President and theAuditor-General within six months after the end of eachfinancial year.


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Oversight of Local Government Authorities, Public Corporations and State-Owned Enterprises

Submission of consolidated audit accounts of local governmentauthorities

89. The Minister responsible for Local Government shall, within ninemonths after the end of each financial year, submit to the Minister astatement of consolidated audited accounts of each local governmentauthority.

Duty of governing body of public corporation and state-owned enterprise90. The governing body of a public corporation or state-owned enter-

prise shall establish and maintain(a) policies,(b) procedures,(c) risk management and internal control systems, and(d) governance and management practices,

to ensure that that public corporation or state-owned enterprise managesits resources prudently and operates efficiently in accordance with theobjectives for which the public corporation or state-owned enterprise wasestablished.

Collection and receipt of moneys due to public corporations91. (1) The Board of Directors of a public corporation governed by

this Act shall ensure the efficient management of the financial resourcesof the public corporation including the collection and receipt of moneysdue to that public corporation.

(2) Where a public corporation wilfully or negligently fails to ensurethat moneys due to that public corporation are collected or received, theMinister shall, upon the recommendation of the Auditor-General,withdraw or suspend the emoluments of the members of the governingbody of the public corporation, either jointly or severally.

Removal of directors of a public corporation92. (1) A person appointed by the Government as a director of a public

corporation who fails to report on the operations of that public corpora-tion to the Minister as required under section 80 shall be removed fromoffice.

(2) The procedure for the removal of a director in the Civil Service,as set out in the Civil Service Act, 1993 (P.N.D.CL. 327), applies to theremoval of a director of a public corporation under subsection (1).


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Annual financial plan of public corporations and state-owned enterprises93. (1) The governing body of a public corporation or state-owned

enterprise shall, not later than four months before the beginning of eachfinancial year, submit to the Minister through the relevant sector Minister,a financial plan reflecting the proposed revenue and expenditureestimate of that public corporation or state-owned enterprise in respectof the ensuing financial year.

(2) The governing body of a public corporation or state-ownedenterprise shall, at the end of every quarter and at any other time that theMinister and relevant sector minister may determine, report to them on

(a) operations of that public corporation or state-ownedenterprise in relation to its approved business plan for theyear; and

(e) any other matter that the Minister may specify as a matterto be included in the report.

Financial directives to public corporations and state-owned enterprises94. (1) The Minister may issue a financial directive to a public corpo-

ration or state-owned enterprise requesting that public corporation orstate-owned enterprise to

(a) provide financial information that the Minister mayspecify; and

(b) submit to a special audit or review by a person appointedby the Minister.

(2) A public corporation or state-owned enterprise shall complywith a financial directive issued under subsection (1).

(3) A financial directive issued under subsection (1) shall bedisclosed in the annual report of the public corporation or state-ownedenterprise concerned, covering the year in which the directive wasreceived.

(4) The annual report referred to under subsection (3) shallindicate the extent to which the public corporation or state-owned enter-prise concerned complied with the directive.

Accounts and audit of public corporations and state-owned enterprises95. The governing body of a public corporation or a state-owned

enterprise shall(a) cause to be prepared, not later than two months after the

end of each financial year, an annual account in respect ofthat financial year; and


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(b) submit to the Minister, not later than four months after theend of each financial year, an audited financial statement.

Miscellaneous Provisions

Offences and penalties96. (1) A person, acting in an office or employment connected with

the procurement or control of Government stores, or the collection,management or disbursement of amounts in respect of a public fund or apublic trust who

(a) makes an unauthorised commitment resulting in a financialobligation for the Government,

(b) fails to collect moneys due to the Government,(c) is responsible for any improper payment of public funds or

payment of money that is not duly verified in line withexisting procedures,

(d) is responsible for any deficiency in or for the loss, damageor destruction of any public funds, stamp, security, storesor any other Government property,

(e) accepts or receives money or valuable consideration for theperformance of an official duty,

(f) in relation to the duties of that person, willfully makes orsigns a false certificate, false return or false entry in a book,or

(g) fails to report knowledge or information in respect of fraudcommitted by a person against the Government, contraryto any enactment related to public financial management,to the appropriate authority or law enforcement authority

commits an offence and is liable on summary conviction to a term ofimprisonment of not less than six months and not more than five yearsor to a fine of not less than one hundred penalty units and not more thantwo thousand, five hundred penalty units or to both.

(2) A person, acting in an office or employment connected withthe procurement or control of Government stores, or the collection,management or disbursement of amounts in respect of a public fund ora public trust who authorises an expenditure exceeding the approvedappropriation in the relevant budget commits an offence and is liable onsummary conviction to a term of imprisonment of not less than six monthsand not more than twelve months or to a fine of not more than the valueof the assessed impact of the commitment or to both.


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(3) A person who promises, offers or gives money or any othervaluable consideration to another person, acting in an office or employ-ment,

(a) connected with the procurement or control of governmentstores,

(b) connected with the collection, management or disbursementof amounts in respect of a public fund or a public trust, or

(c) with the intent to influence(i) a decision or action on any question or matter that

is pending or is likely to be brought before theperson in an official capacity, or

(ii) a person to commit fraud against the Governmentor to connive with, take part in or allow an oppor-tunity for the commission of the fraud

commits an offence and is liable on summary conviction to a fine of notmore than three times the amount offered or accepted or a term ofimprisonment of not less than six months and not more than two yearsor to both.

Surcharge97. (1) Where the Minister, after due inquiry, is satisfied that

(a) a loss or deficit in public funds that has been advanced toor is under the control of a public officer, or

(b) a loss or damage to public property under the care of apublic officer,

is occasioned as a result of the negligence or misconduct of that publicofficer, or the negligence or misconduct of that public officer contributedto the loss or deficit in public funds or loss or damage to public property,the amount of the loss or deficit or value of the property lost or damagedor the cost of replacing or repairing the damage to the property becomesa debt due to the Government and shall be recovered through an admin-istrative procedure or through a court action.

(2) Where the negligence or misconduct of the public officer onlycontributed to the loss or deficit in public funds or loss or damage topublic property, the amount recoverable from the public officer undersubsection (1) may be restricted to an amount that the Minister, after dueinquiry, considers just and equitable having regard to the contributionthe public officer made to the loss, deficit or damage.

(3) For purposes of this section, a “public officer” includes aperson who has previously occupied a public office.


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Penalty for contravention of this Act98. (1) A person who

(a) refuses or fails to produce or submit any informationrequired under this Act,

(b) issues a local purchase order outside the Ghana IntegratedFinancial Management Information System or any otherelectronic platform in use by Government,

(c) misuses or permits the misuse of any Governmentproperty which results in a loss of public resources,

(d) contravenes or knowingly permits another person tocontravene a provision of this Act or the Regulations, or

(e) instigates another person to contravene a provision of thisAct or the Regulations,

commits an offence and where no penalty is provided for the offence, isliable on summary conviction to a fine of not less than one hundred andfifty penalty units and not more than two hundred and fifty penalty unitsor to a term of imprisonment of not less than six months and not morethan two years or to both.

(2) A person who contravenes subsection (1) is, in addition tothe penalty specified in that subsection

(a) liable for any liability contracted on behalf of Governmentas a result of the contravention; and

(b) subject to disciplinary action by Government includingdismissal, demotion or suspension.

Waiver of sovereign immunity99. Where the Minister is satisfied that it is in the public interest, the

Minister may, in connection with a borrowing governed by foreign law,(a) in accordance with the Constitution and any other enact-

ment, and(b) with the prior approval of Parliament

waive any right of the Government to claim sovereign immunity fromproceedings in a foreign court to settle any disputes, and with respect toits assets.

Fiscal impact analysis of legislation and proposals100. (1) Any legislation to be laid before Parliament or proposal

submitted for the approval of Parliament shall be accompanied by afiscal impact analysis stating the estimated effect on revenues and expen-ditures for the financial year in which the legislation or proposal isexpected to come into effect.


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(2) The fiscal impact analysis shall be prepared and submitted inaccordance with the Regulations.

Regulations101. (1) The Minister may, by legislative instrument, make Regula-

tions(a) for the operation of a public account;(b) for the recording and controlling of expenditure commit-

ments and payments;(c) for the management of Government assets;(d) for the management of Government debts;(e) for Audit Committees;(f) for claims and write offs of public funds;(g) for the period within which a covered entity shall close all

bank accounts opened by the covered entity before the cominginto force of this Act;

(h) for the limit on borrowing by local government authori-ties;

(i) for the limit on borrowing by public corporations and state-owned enterprises;

(j) for penalties under this Act;(k) for the implementation of the Treasury Single Account

established under section 46 particularly in respect of (i) the scope of the Treasury Single Account,(ii) the structure of subaccounts of the Treasury Single

Account,(iii) the compliance procedures required of covered

entities and the Consolidated Fund;(l) prescribing the method for the preparation, evaluation and

execution of investment projects under section 33;(m) prescribing the manner in which the Minister may, approve,

abandon or remit (i) claims by or on behalf of Government, or(ii) service to the Government, and

(n) any other matters that are necessary for the effective imple-mentation of this Act.

(2) The Minister may, in consultation with the Public Procure-ment Authority, by legislative instrument, make Regulations governingthe acquisition, receipt, custody, control, issue and disposal of Govern-ment stores.


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Interpretation102. In this Act, unless the context otherwise requires,

“accounting standards “mean authoritative statementsadopted by the Controller and Accountant-General,indicating how particular types of transactions and otherevents are to be reflected in the accounts and financialstatements of a covered entity;

“appropriation” means an authorisation made under anAppropriation Act permitting withdrawal out of theConsolidated Fund or any other public fund;

“Appropriation Act” means an Act passed in accordance witharticle 179 of the Constitution, which authorises withdrawalout of the Consolidated Fund or any other public funds fora financial year;

“approved financial institution” means an establishmentlicensed to deal in financial transactions;

“arrears” means any payment which has not been made on itsdue date;

“Auditor-General” means the person appointed as Auditor-General under article 187 of the Constitution;

“autonomous agency” means a self-governing body establishedby the Government that is responsible for making bindingdecisions and developing its strategic plans without inter-ference or with limited interference from the Government;

“baseline parameters” means an agreed description of theattributes of a product, within a specific period where theagreed description serves as a basis for defining change tothe product;

“borrowing” means (a) raising funds by concluding loan agreements, (b) obtaining advances by overdrafts, and (c) issuing debt securities;

“borrowing instrument” includes a loan agreement and anagreement to use overdraft facilities or securities;

“budget” means the Government plan of revenue and expen-diture for a financial year;


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“budgeting” means the process by which Government sets lev-els to efficiently collect revenue and allocate the spendingof resources among all sectors to meet national objectives;

“cash management bill” means a debt security of the Govern-ment with a tenor of seven to twenty one days;

“capital expenditure” means any expenditure for the creationor acquisition of a fixed asset, inventory or other valuablephysical stock which is not expended within the year;

“central government” means units of government that exerciseauthority over the economy of the country;

“Chief Director” means the Chief Director of the Ministry; “commitment” in reference to a covered entity ,means a con-

tract or other binding arrangement which creates a futureexpense or liability;

“Consolidated Fund” means the Consolidated Fund establishedunder article 176 of the Constitution;

“consolidated public account” means the process of eliminat-ing transactions between different ministries, agencies orunits of government and combining in a common set ofcategories the sum of the external transactions of theministries, agencies or units to and from the rest of theeconomy;

“Controller and Accountant-General” means the personappointed under section 6 or an officer acting on theauthority of the Controller and Accountant- General;

“covered entities” means(a) the Executive, Legislature and Judiciary;(b) constitutional bodies;(c) Ministries, Departments Agencies and local

government authorities;(d) the public service;(e) autonomous agencies; and(f) statutory bodies;

“debt” includes a financial liability created by(a) borrowing,(b) credits accepted under supplier’s credit agreements,(c) the issuance of debt securities, and


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(d) assumption of the payment obligations under aguaranteed loan;

“debt management operations” include(a) preparation of medium-term debt management

strategies to achieve the debt management objec-tives,

(b) preparation of annual borrowing and recovery plansbased on the determined strategy;

(c) borrowings and other market transactions to achievethe strategic goals; and

(d) debt data recording and other debt administrationactivities, and preparation of reports and statisticalbulletins on debt and debt management;

“debt management strategy” means a strategic plan designed tomake operational the high-level objectives for debt man-agement, taking into account the cost and risk associatedwith the public debt portfolio, which specifies the borrowingrequirements of government and how the borrowingrequirement of government is financed over a number ofyears;

“debt market” means an environment in which the issuance andtrading of debt securities occur;

“debt portfolio” means a combination of debt instruments,often classified in accordance with the share of particularcurrencies, and the types and rates of interest held byGovernment;

“debt securities” mean(a) legal documents as evidence of debt issued by the

Government in electronic format or hard copy to anamed person;

(b) negotiable or non-negotiable bearer instruments;(c) promissory notes, IOU undertakings and similar

financial instruments;“economic classification” means the type of expenditure by

Government in respect of compensation, goods andservices and capital expenditure;


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“expenditure” means a non-repayable and a non-repaying pay-ment by Government, whether requited or unrequited andwhether for current or capital purposes;

“financial assets” means money at hand, or money that is easilyaccessible, in the form of cash deposit, cheque, loan,account receivable, and marketable securities such asdeposits, loans, bonds, financial derivatives, and accountsreceivable;

“finance lease “ means an arrangement between two parties bywhich the lessor undertakes to lease to the lessee for thelessee’s use only and against payment of mutually agreedlease rentals over a specified non-cancellable period,

(a) the lessor’s own already acquired assets, or(b) an asset that the lessor agrees to acquire from a third

party, known as the supplier, chosen and specifiedby the lessee so that the lessor retains full title to theasset during the period of the lease,

and under which, subject to agreement by the lessor, thelessee may exercise an option to purchase the asset outrightafter the period of the lease at a price agreed on by theparties,

“financial management system” means the methodology andsoftware that the Government uses to oversee and governits income, expenses and assets for purposes of optimisingfinancial management, reporting and sustainability;

“financial year” means a period of twelve months commencingon the1st day of January and ending on the 31st day ofDecember;

“financing estimates” means a list of all sources of funds bywhich the budget deficit will be financed;

“financial swap” means an agreement in which two partiesexchange cash flows of one party’s financial instrumentsfor those of the other party’s financial instrument;

“fiscal agent” an institution or organisation such as a bank orfinancial institution that acts on behalf of governmentperforming various financial duties including the redemp-tion of bonds, coupons, handling tax issues, replacement oflost or damaged securities and other finance related tasks;


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“fiscal policy” means the means by which Government policiesare implemented with respect to revenue, expenditure anddebt management;

“fiscal policy document” means an outline of the revenue,expenditure, financing and debt management decisions ofGovernment that influences the economy;

“fiscal policy objective” means the targets that Governmentseeks to achieve on the implementation of a fiscal policy;

“fiscal risk” means a risk arising from an unforeseen macroeco-nomic scenario such as external shock, natural disaster,fluctuation in the value of Government assets, commoditiesor guarantees and other contingent liabilities;

“fiscal risk statement” means a statement that the Governmentissues periodically on the nature of fiscal risk over themedium term or any other specific period;

“fixed asset” means a long term resource controlled by a coveredentity, public corporation or state owned enterprise as aresult of past events and from which future economicbenefits are expected to flow to the entity;

“forecast fiscal balance” means a statement issued by theGovernment in respect of the expected amount of moneywhich Government has accrued from tax revenue and theproceeds of assets sold minus any Government spendingover a fiscal year or any other specific period;

“foreign market” means the financial market that represents themechanism for issuing and trading securities of entitiesoutside the country;

“Ghana Integrated Financial Management InformationSystem” means the electronic platform used by theGovernment to

(a) manage commitments made against appropriation,(b) process payment claims,(c) record revenue and expenditure transactions, and(d) produce monthly, quarterly and annual financial

reports;


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“Government” means any authority by which the executiveauthority of the Republic is exercised;

“Government cash management” means the strategy andassociated process adopted by Government for purposesof managing cost effectively in respect of the short termcash flows and short term cash balances of government;

“Government debt” means a financial claim on the Governmentthat requires payment by the Government of the principalsum or the principal and interest to a creditor;

“Government property” means all movable and non-movableassets or chattels owned by Government including land,buildings, plant, vehicles, machinery and equipment;

“guarantee” means an explicit undertaking by the issuer toguarantee fulfillment of a financial obligation for whichthe guarantee is issued;

“internally generated funds” means revenue generated fromthe activities of a covered entity from its operations otherthan taxes collected by the Ghana Revenue Authority;

“inventories” mean(i) assets in the form of materials or supplies to be

consumed in the production process;(ii) assets in the form of materials or supplies to be

consumed or distributed in the rendering ofservices; and

(iii) assets held for sale or distribution in theordinary course of operations;

“investment” means an expenditure on the creation or acquisi-tion of fixed assets, inventories, valuable physical stocks orsecurities;

“liability” includes(a) a liability measured in accordance with generally

accepted accounting practice, or(b) a liability that is contingent on an uncertain future

event depending on the circumstances of each case;“liquidity buffer” means funds set aside by Government to take

care of shortfalls in Government financing in the short term;“local government authority” means a Metropolitan, Municipal,

or District Assembly as defined under the Local Govern-ment Act,1993 (Act 462);


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“macro fiscal risk” has the meaning assigned to fiscal risk;“market transaction” means an order placed by an insider,

after the appropriate documentation has been filed, to buyor sell restricted securities openly on an exchange market;

“medium-term” means a period of not less than three years butnot more than five years;

“Medium-Term Expenditure Framework” means an annual,rolling three-year expenditure planning that sets out themedium term expenditure priorities and hard budget con-straints against which sector plans may be developed andrefined to match available resources;

“Medium-Term Fiscal Framework” means an annual rollingthree year period over which the Government plans fiscalpolicy and likely budget parameters to macroeconomicperformance;

“Medium Term National Development Plan” means a set ofcomprehensive development programmes, activities andprojects initiated by the Government through coveredentities to support and give direction to Governmentefforts;

“Minister” means the Minister responsible for Finance;“Ministry” means the Ministry responsible for Finance;“monetary grants” means non-repayable funds received by a

covered entity from an individual, body or institution foruse by the covered entity;

“monetary policy objective” means(i) exchange rate and interest rate management that has

no direct relation to fiscal policy but may be affectedby fiscal policy operations; and

(ii) goals that the credit control measures adopted bythe Bank of Ghana seek to achieve;

“multi-year ceilings” means the explicit commitment of Govern-ment to limit expenditure within the established maximumlevel of expenditure for a period of more than twelvemonths;

“multi-year contract” means a contract for the purchase of goods,works, supplies or services for a period of more than oneprogram year;


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“multi-year expenditure commitment” means a contract,transaction, or agreement that binds the Government to afinancial commitment for more than one financial year orwhich results in a contingent liability, except where thefinancial commitment or contingent liability is authorised byParliament;

“other entities” means a private institution, an organisation ora company that is of interest to Government in respect ofachievement of its policies;

“petroleum funds” means the Petroleum Holding Fund, theGhana Stabilisation Fund, the Ghana Heritage Fund andsubsequently, the Ghana Petroleum Wealth Fund;

“petroleum revenue” includes(a) royalties in cash or in equivalent barrels of oil or

equivalent units of gas, payable by a licensed producer,including the national oil company or a companyunder a Production Sharing Agreement or otheragreement,

(b) corporate income taxes payable by licensed upstreamand mainstream operators,

(c) participating interest,(d) additional oil entitlements,(e) dividends from the national oil company for

Government’s equity interest,(f) the investment income derived from accumulated

petroleum funds,(g) surface rentals paid by licensed producers, or(h) any other revenue determined by the Minister to

constitute petroleum revenue, derived fromupstream and midstream petroleum operations;

“prepayment” means the settlement of a debt or installmentpayment before its official due date;

“Principal Account Holder” means the sector Minister or thepolitical head of a covered entity;

“Principal Spending Officer” in relation to a covered entity,means the Chief Director, Chief Executive or the mostsenior administrative head responsible for producing outputs;


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“property” means(a) a book, paper, an account or a document that is used,

received or in the possession of a person employedto collect or manage the revenue of Government;or

(b) moneys or valuable securities of Government thatis in the possession of a person in the course ofemployment of that person;

“public accounting record” means a record that is classified asan account including manual and electronic record, a book,ledger, ledger sheet, ledger card, or machine tabulation andvoucher, schedule, returns, bank statement or any otherstatement;

“public accounts” mean the financial statements, notes andreports pertaining to money received into, held in, and paidfrom public funds;

“public corporation” means a body corporate establishedunder an Act of Parliament in accordance with article 192of the Constitution;

“public finances” means the income and expenditures of apublic sector organisation;

“public financial management system” means legal and admin-istrative procedures established to permit covered entitiesto conduct activities in a manner that ensures correct usageof public funds to meet defined standards of probity,regularity, efficiency and effectiveness;

“public funds” means the Consolidated Fund, the ContingencyFund and any other fund established by or under an Act ofParliament;

“public money” includes tax revenue, non tax revenue, grantsand other receipts;

“public office” includes an office the emoluments attached towhich are paid directly from the Consolidated Fund ordirectly out of moneys provided by Parliament and anoffice in a public corporation cstablished entirely out of publicfunds or moneys provided by Parliament;


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“public officer” includes the holder of a public office and aperson appointed to act in that office;

“Public Procurement Authority” means the Public ProcurementAuthority established under the Public Procurement Act,2003 (Act 663);

“public resources” mean public revenue including revenueacquired through donation, bequest, borrowing, movableand fixed asset, deposit, receivables and rights;

“public service” includes service in any civil office of Govern-ment, the emoluments attached to which are paid directlyfrom the Conslolidated Fund or directly out of moneysprovided by Parliament and service with a public corpora-tion;

“public trust” means moneys raised or received in trust for oron behalf of the Government;

“resources” means the amount of money, material, staff, aid,financial assistance, technical assistance and other assetsavailable to an entity to enable it carry out its functions;

“resource envelope” means the overall financial resourcesavailable to Government for the fiscal year;

“sector Minister” means the Minister with oversight responsi-bility for the public corporation or state-owned enterpriseconcerned;

“short-term” means a period of not more than three years;“state-owned enterprise” means an entity whether incorporated

or not under the Companies Act, 1963 (Act 179) whoseshares are wholly or partially held or controlled by Govern-ment;

“statutory expenditure” means an expenditure charged on theConsolidated Fund by the Constitution or by an Act ofParliament otherwise than expenditure of moneys appro-priated or granted by an Appropriation Act or a Supple-mentary Appropriation Act;

“spending plan” means a strategy document that contains thecash flow of a covered entity of Government;

“subvention” means the appropriation of funds to a coveredentity for onward transfer to an entity which is not a coveredentity;


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“Supplementary Appropriation Act” means an Act passed inaccordance with article 179 of the Constitution the purposeof which is to supplement an appropriation granted underan Appropriation Act;

“supplier’s credit agreement” means a credit arrangement thatincludes payment of interest between a purchaser and asupplier of any goods, works or services that gives the purchaserthe right to fully pay for the goods, works or services at afuture date extending beyond one year from the date thegoods, works or services were supplied;

“Treasury Single Account” means a consolidated bank accountsystem where all deposit and payments transactions areprocessed for central government;

“unexpended” means a budgetary appropriation based on whichcommitment has been made and expenditure incurred butnot yet paid by the end of the financial year;

“virement” means the reallocation of funds within the budgetfrom one budget line to another budget line; and

“warrant” means the authority to commit government.

Repeals and savings103. (1) The following Acts are repealed:

(a) the Financial Administration Act, 2003 (Act 654); and(b) the Loans Act, 1970 (Act 335).

(2) Section 16(8) of the Internal Audit Agency Act, 2003(Act 658) is repealed.

(3) Section 30 of the Audit Service Act, 2000 (Act 584) isrepealed.

(4) Despite the repeal of the enactments in subsection (1), theRegulations, orders, rules and instructions relating to the administrationof public finance, government stores and public corporation other thanthat set up for commercial purposes made or done under the repealedenactments shall continue to have effect as if made or done under thisAct with the necessary modification until the Regulations, orders, rulesand instructions are revoked, reviewed, cancelled, withdrawn or termi-nated by Regulations, orders or directives under this Act.

(5) Despite the repeal of the enactments in subsection (1), anyborrowing, lending or guarantee issued by Government or any other


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transaction entered into for and on behalf of the Government under anyof the repealed enactments or Regulations made under the repealedenactment shall

(a) be considered to have been done under this Act; and(b) continue in force in accordance with the terms of the

transaction until maturity or expiry. (6) Despite the repeal of the enactments in subsections (2) and

(3), a report or a statement submitted under section 16 (8) of the InternalAudit Agency Act, 2003 (Act 658) or section 30 of the Audit Service Act,2000 (Act 584) shall be considered to have been submitted under this Act.

Transitional provisions104. (1) An internal audit officer or a public officer performing internal

audit work in a covered entity immediately before the coming into forceof this Act shall on the coming into force of this Act be deemed to consti-tute the members of the Internal Audit Unit for purposes of this Act.

(2) Despite subsection (1), a public officer performing internalaudit duties in a covered entity may be reassigned to an internal auditunit that the appointing authority may determine.


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SCHEDULE

Accounts to be submitted(section 80 and 81)

Accounts to be submitted by the Controller and Accountant-General1. The Controller and Accountant-General shall submit the following

accounts to the Minister and the Auditor-General:(a) a balance sheet showing the consolidated assets and liabilities

of all public funds;(b) a consolidated statement of the cash flow for all public funds

and any other entity of central Government showing therevenues, expenditures and financing for the financial year;

(c) a balance sheet showing the assets and liabilities of thecentral Government;

(d) a statement of the cash flow for the central Governmentshowing the revenues, expenditures and financing of theConsolidated Fund for the financial year;

(e) a summary statement of revenue and expenditure, being asummary of all the statements signed by the Principal SpendingOfficer under subparagraph (a) and (c) of paragraph (2);

(f) relevant notes to the account; and(g) any other statement that Parliament may require.

Accounts to be submitted by Principal Spending Officer2. A Principal Spending Officer shall submit the following accounts

to the Controller and Accountant-General:(a) an appropriation account, signed by the Principal Spending

Officer, showing (i) the services for which the moneys expended were

voted,(ii) the sums actually expended on each service, and(iii) the state of each covered entity compared with the

amount appropriatedfor that covered entity by Parliament;

(b) a statement signed by the Principal Spending Officer in theform that the Controller and Accountant-General maydirect, containing


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(i) the amount of commitments outstanding for thesupply of goods, works and services at the end ofthe financial year, and

(ii) any other information that the Controller andAccountant-General may require;

(c) a statement of revenues received and signed by the PrincipalSpending Officer in the form the Controller and Accountant-General may direct, showing

(i) the amount contained in the estimates of revenuefor each source of revenue,

(ii) the amount actually collected, and(ii) an explanation for any variation between the revenues

actually collected and the amount estimated;(d) a statement of arrears of revenue signed by the Principal

Spending Officer which(i) indicates the amount outstanding at the end of the

financial year for each source of revenue, and(ii) contains information in the form that the Controller

and Accountant-General may direct, and which shallbe submitted as a nil return where appropriate;

(e) a statement of assets, signed by the Principal Spendingofficer, indicating

(i) details and values of the unallocated stores underthe control of the Principal Spending Officer at theend of the financial year, and

(ii) details and values of any other classes of assetsunder the control of the Principal Spending Officer,as the Controller and Accountant-General maydetermine;

(f) a statement of performance, signed by the Principal SpendingOfficer, indicating each class of output provided duringthe year, which shall

(i) compare the performance with the forecast of theperformance contained in the estimates laid beforeParliament; and


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(ii) give the particulars of the extent to which theperformance criteria specified in that estimate inrelation to the provision of those outputs was satisfied;and

(g) any other statements, in the form that the Controller andAccountant-General may require.

Date of Gazette notification: 26th August, 2016.


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GPCL, ASSEMBLY PRESS, ACCRA. GPCL/A656/1,500/08/2016Website: www.ghpublishingcompany.com E-mail: [email protected]

Documents

PUBLIC FINANCIAL MANAGT. ACT, 2016 - CAGD · Public Financial Management Act, 2016 2 Act 921 29. Re-allocation of funds from a covered entity 30. Budget implementation by Principal